RE: taking on a subcontractor

["Bill Darnall" <darcom -at- sbcglobal -dot- net>]

Well, don't leave THAT hanging, my man. C'mon, out with it.
- - - - - -
How did this person turn into an employee of yours?
Was she required to work at your location, using your 
tools (computers, software, etc.)?
- - - - - -
Spill!  :-)

/kevin

Kevin,

The subcontractor agreement was a fixed-price arrangement and clearly
spelled-out it was a subcontract to be performed by an independent
subcontractor. My customer agreed to the subcontracting arrangement.
The subcontractor signed the agreement as an independent
subcontractor. She "certified" she met all of the requirements of an
independent subcontractor.

My subcontractor worked in her own home and used her own computer and
set her own hours. She was paid when the work was completed, as
agreed.

After she had been paid, she filed for unemployment and listed my
company as her "previous employer." As the owner of my one-person
company, I strongly objected. However, the California Employment
Development Department (EDD) ruled that, subcontract notwithstanding,
she was not an independent contractor because: she had no valid
business license, she did not do any advertising, and she did not
supply her own liability insurance.

The "plus, plus, plus" I mentioned included many hours of (my) lost
time and the total obliteration of all tax moneys I had paid into the
EDD for (real) unemployment.

I did not intend to sound dogmatic. It was a serious response to a
serious question. I was telling about my experience with what appeared
to be a valid subcontractor agreement. That is why I suggested an
attorney review any subcontract.
 
Bill D.





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